We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Invitae (NVTA) Scales a New 52-Week High on Solid Prospects
Read MoreHide Full Article
Share price of Invitae Corporation scaled a new 52-week high of $21.32 on Mar 8, closing nominally lower at $20.84. The company has gained 52% over the last six months against the broader industry’s 15.8% decline. The S&P 500 index saw a decline of 4.8% over this period.
The company, with a market cap of $1.82 billion, has a trailing four-quarter average positive earnings surprise of 5.49%.
Its five-year historical growth rate is favorable at 215.8% as compared with the industry’s 33.3% and the S&P 500’s 3.9%.
Invitae reported revenue growth of 116.5% in 2018, compared with the industry’s 8.4% and the S&P 500’s 6.8%. The company registered earnings growth rate of 25.3% against the industry’s decline of 7% and the S&P’s growth of 23.7%.
Invitae currently carries a Zacks Rank #3 (Hold).
Factors Working in Favor
One of the key growth drivers for the company has been an increase in the number of billable tests over the past year. The company registered strong volume growth across all diagnostic areas, from old to new accounts. Robust growth in volume was reported from international markets as well, which contributed about 10% to the fast-growing segment of testing pertaining to its biopharma partner programs.
Banking on increasing collection rates from third-party payers like Medicare and several institutional and pharma partners, the company has seen steady growth in revenues of late.
In late 2018, the company signed 11 new partnerships with biopharma companies, health systems and major cancer centers, thereby expanding its network. This has created quite a lot of optimism in the market. Invitae’s continued investment in its selling, marketing, research and dvelopment divisions should boost profits going ahead.
In February 2019, the genetics major launched non-invasive prenatal screening, expanding its portfolio of genetic testing services for women’s health. Prior to this, Invitae had launched a comprehensive genetic screening to expand its reproductive health portfolio. Recently, the company partnered with Alnylam pharmaceuticals to enable access to genetic testing for patients of primary hyperoxaluria. These developments are expected to fuel growth.
All these factors have lifted the company’s stock to a 52-week high.
ABIOMED’s long-term earnings growth rate is expected at 27.67%.
Penumbra’s long-term earnings growth rate is projected at 20.93%.
Masimo’s long-term earnings are projected to grow 15.60%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year? Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Invitae (NVTA) Scales a New 52-Week High on Solid Prospects
Share price of Invitae Corporation scaled a new 52-week high of $21.32 on Mar 8, closing nominally lower at $20.84. The company has gained 52% over the last six months against the broader industry’s 15.8% decline. The S&P 500 index saw a decline of 4.8% over this period.
The company, with a market cap of $1.82 billion, has a trailing four-quarter average positive earnings surprise of 5.49%.
Its five-year historical growth rate is favorable at 215.8% as compared with the industry’s 33.3% and the S&P 500’s 3.9%.
Invitae reported revenue growth of 116.5% in 2018, compared with the industry’s 8.4% and the S&P 500’s 6.8%. The company registered earnings growth rate of 25.3% against the industry’s decline of 7% and the S&P’s growth of 23.7%.
Invitae currently carries a Zacks Rank #3 (Hold).
Factors Working in Favor
One of the key growth drivers for the company has been an increase in the number of billable tests over the past year. The company registered strong volume growth across all diagnostic areas, from old to new accounts. Robust growth in volume was reported from international markets as well, which contributed about 10% to the fast-growing segment of testing pertaining to its biopharma partner programs.
Banking on increasing collection rates from third-party payers like Medicare and several institutional and pharma partners, the company has seen steady growth in revenues of late.
In late 2018, the company signed 11 new partnerships with biopharma companies, health systems and major cancer centers, thereby expanding its network. This has created quite a lot of optimism in the market. Invitae’s continued investment in its selling, marketing, research and dvelopment divisions should boost profits going ahead.
In February 2019, the genetics major launched non-invasive prenatal screening, expanding its portfolio of genetic testing services for women’s health. Prior to this, Invitae had launched a comprehensive genetic screening to expand its reproductive health portfolio. Recently, the company partnered with Alnylam pharmaceuticals to enable access to genetic testing for patients of primary hyperoxaluria. These developments are expected to fuel growth.
All these factors have lifted the company’s stock to a 52-week high.
Key Picks
A few better-ranked stocks in the broader medical space are ABIOMED, Inc., , Penumbra, Inc. (PEN - Free Report) and Masimo, Inc. (MASI - Free Report) . Notably, each of these stocks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ABIOMED’s long-term earnings growth rate is expected at 27.67%.
Penumbra’s long-term earnings growth rate is projected at 20.93%.
Masimo’s long-term earnings are projected to grow 15.60%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year? Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>